The biggest risk at this stage is that the project fails and APG will go down the drain. Then their $1M and 16M shares as fees will be worth nothing. Unless they dump the 16M shares right away to reduce their $1M investment, they are taking all the risks that the project may fail. I believe these guys were not born yesterday, they are betting the project will succeed.
If the plant gets completed and the test run successful and contracts worth millions and millions are signed some time this year, and say the share price would go to 10c, their investment will be worth $10M and the fees $1.6M. That would be something to write home about.
As the return can be huge, I think these guys will be giving MT a call every couple of weeks just to make sure the money is not used for sponsoring football teams or replacing company cars but to make sure the plant is completed.
As for the number of shares on issue, when the company has steady income of millions and millions, it can always buy them back.
I remember it would cost something around $20M to complete the plant, so what can APG do with $1M?
APG Price at posting:
0.8¢ Sentiment: Buy Disclosure: Held